TY  - GEN
AU  - Carlsson, Mikael
AU  - Messina, Julián
AU  - Skans, Oskar Nordström
TI  - Research Insights: How Do Job and Worker Flows Respond to Firms' Idiosyncratic Technology and Demand Shocks?
PY  - 2021
Y1  - 2021/02/10
DO  - 10.18235/0003038
AB  - Permanent demand shocks are the main driver of labor adjustments. A one standard deviation demand shock increases the net employment rate by 6 percentage points in the long run, while a technology shock increases it by 0.5. Transitory demand shocks have much smaller impacts. When hit by a permanent demand shock, firms adjust fast and symmetrically. Most of the labor change occurs within a year. If the shock is positive, firms adjust by increasing hires. If the shock is negative, they increase separations without reducing hires.
UR  - https://doi.org/10.18235/0003038
ER  -